The Analytical Overview of the Main Currency Pairs on 2018.06.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16871

Open: 1.16561

% chg. over the last day: -0.27

Day's range: 1.16561 – 1.16969

52 wk range: 1.0571 – 1.2557

On Friday, there was high trading activity on major currencies. The US published positive economic reports. The statistics on the labor market turned out to be quite optimistic and exceeded market expectations. The index of economic activity in the US manufacturing sector rose to 58.7, which is higher than the market expectations of 58.2. The dollar index (#DX) closed the trading session in the positive zone (+0.22%). At the moment, the EUR/USD currency pair is being traded in a flat. In the near future, a technical correction is not ruled out. The key trading range is 1.16650-1.17200. We recommend opening positions from these marks.

The news feed on 2018.06.04:

Today, the publication of important economic reports from the US and the Eurozone is not planned.

Indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is near 0 mark.

Stochastic Oscillator has moved away from the overbought zone, the %K line is below the %D line, which gives a strong signal to sell EUR/USD.

Trading recommendations

Support levels: 1.16650, 1.16250, 1.15750

Resistance levels: 1.17200, 1.17900, 1.18250

If the price fixes below the support level of 1.16650, the EUR/USD quotes are expected to fall. The target movement level is 1.16250-1.15750.

Alternative option. If the price fixes above the resistance level of 1.17200, it is necessary to consider buying EUR/USD. The movement is tending to 1.17600-1.17900.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32944

Open: 1.33350

% chg. over the last day: +0.36

Day's range: 1.33320 – 1.33773

52 wk range: 1.2361– 1.4345

On Friday, the bullish sentiment prevailed on the GBP/USD currency pair. The pound was supported by positive data on economic activity in the manufacturing sector of Great Britain. Currently, GBP/USD is consolidating. The key trading range is 1.33400-1.33750. The positions must be opened from these marks.

At 11:30 (GMT+3:00) the index of economic activity in the construction sector in the UK will be released.

The price has fixed above 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates a drop in GBP/USD.

Trading recommendations

Support levels: 1.33400, 1.33000, 1.32600

Resistance levels: 1.33750, 1.34100, 1.34400

If the price fixes above the resistance level of 1.33750, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.34000-1.34400.

Alternative option. If the price fixes below 1.33400, it is necessary to consider sales of GBP/USD. The closest target for profit taking is the round level of 1.33000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29560

Open: 1.29440

% chg. over the last day: -0.07

Day's range: 1.29118 – 1.29640

52 wk range: 1.2059 – 1.3795

There is an ambiguous technical pattern on the USD/CAD currency pair. The trading instrument is in a sideways trend. At the moment, the USD/CAD quotes are testing local support and resistance levels: 1.29100 and 1.29500, respectively. The USD/CAD currency pair is tending to decline. We recommend opening positions from the key support and resistance levels.

Today, the news feed on economy of Canada is calm.

The signals of the indicators are ambiguous. The price has crossed 50 MA and 200 MA.

The MACD histogram has begun to decline and moved to the negative zone, indicating a fall in USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.29100, 1.28450, 1.28000

Resistance levels: 1.29500, 1.29850, 1.30350

If the price fixes below 1.29100, the USD/CAD quotes are expected to fall. The movement is tending to 1.28500-1.28200.

Alternative option. If the price fixes above the local resistance of 1.29500, we recommend buying USD/CAD. The movement is tending to 1.29850-1.30250.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 108.806

Open: 109.437

% chg. over the last day: +0.67

Day's range: 109.437 – 109.765

52 wk range: 104.56 – 114.74

During the last sessions, the bullish sentiment has been prevailing on the USD/JPY currency. At the moment, the USD/JPY quotations are consolidating. The key range is 109.350-109.750. The trading instrument is tending to grow. We recommend paying attention to the yield of US government bonds. Positions must be opened from the key levels.

The news feed on economy of Japan is calm.

The indicators signals are different. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations

Support levels: 109.350, 109.000, 108.500

Resistance levels: 109.750, 110.250

If the price fixes above the resistance level of 109.750, we recommend looking for entry points to the market for opening long positions. The movement is tending to 110.250-110.500.

Alternative option. If the price fixes below the 109.350 mark, it is necessary to consider selling USD/JPY. The movement is tending to 109.000-108.600.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.